The USD/JPY jumped to the upside following better-then-expected US economic data and reached at 81.13 a new daily high but it failed to hold and retreated, pulling back below 81.00 as the Dollar weakened across the board.
The pair once again was unable to hold above 81.00. In the last hours it has been trading steady hovering around 80.80/90, 35 pips above today’s opening price.
Greenback is headed toward the second weekly gain in a row and to the strongest weekly close in a month but the upside has been limited and it is trading closer to record lows that year-to-date highs. Weekly gains seem more limited considering that US government bond yields soared and stocks had the best week in months, factors that usually weaken the Yen.
During the Asian session, in Japan the Tankan report was released. “The Tankan survey shows tantalizing evidence that economic activity in Japan will rebound during the second half of the year following the collapse of manufacturing activity after the March earthquake,” said analyst from Wells Fargo.
Analyst from the bank point out that the Japanese economy has been at the top of the economic news with several important releases: “overall, even if the releases showed a negative number, they mostly came in better than market expectations and showed a clear improvement compared to previous months. This is a clear sign that the Japanese economy is overcoming the problems created by the earthquake, tsunami, and nuclear crisis.”
The pair once again was unable to hold above 81.00. In the last hours it has been trading steady hovering around 80.80/90, 35 pips above today’s opening price.
Greenback is headed toward the second weekly gain in a row and to the strongest weekly close in a month but the upside has been limited and it is trading closer to record lows that year-to-date highs. Weekly gains seem more limited considering that US government bond yields soared and stocks had the best week in months, factors that usually weaken the Yen.
During the Asian session, in Japan the Tankan report was released. “The Tankan survey shows tantalizing evidence that economic activity in Japan will rebound during the second half of the year following the collapse of manufacturing activity after the March earthquake,” said analyst from Wells Fargo.
Analyst from the bank point out that the Japanese economy has been at the top of the economic news with several important releases: “overall, even if the releases showed a negative number, they mostly came in better than market expectations and showed a clear improvement compared to previous months. This is a clear sign that the Japanese economy is overcoming the problems created by the earthquake, tsunami, and nuclear crisis.”
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